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Business Operations in India (Portfolio 966)

Tax Management Portfolio, Business Operations in India, analyzes India's Companies Act, foreign investment policies, foreign
exchange management, anti-competition legislation, Income Tax Act, the
liberal tax concessions granted for new investments and industrial
undertakings, the special concessions for foreign enterprises and the
provisions for the computation of the taxable income of nonresidents.

Description

Some indirect taxes such as excise and customs (import)
duty, sales tax, value added tax and stamp duty are also discussed.
Other topics explained in detail are foreign technology agreements,
policies for setting up a 100% export-oriented unit and the legislation
for troubled industrial companies.

The Worksheets feature a checklist of transactions, guidelines and government policies having corporate and tax significance.

Authors

Business Operations in India was authored by the following experts.

Adil K. Kotwal

Adil K. Kotwal, B.Com, F.C.A., Bachelor of Commerce, University of Bombay (1978), Fellow of the Institute of Chartered Accountants of India. He joined the firm in 1978 and is currently the Managing Partner and partner responsible for the firm's corporate finance and management consultancy and advisory practice. He has served as visiting faculty with the University of Bombay teaching Accountancy and Taxation.

Sunil P. Hansraj

Sunil P. Hansraj, B.Com, F.C.A., University of Bombay (1988), Fellow of the Institute of Chartered Accountants of India. He joined the firm in 1988 and is the partner responsible for the firm's practice relating to international taxation and advisory services to foreign clients investing in India.

Table of Contents

Detailed Analysis

I. Introduction

A. Geography

B. Climate

C. Population

D. Language

E. Transportation

F. Communications

G. Political Structure

H. Judiciary

I. Currency and Banking

J. Quality of Life

II. Operating a Business in India

A. The Indian Economy

1. Introduction

2. Economic Factors

3. India as Investment Location

B. Foreign Investment

1. Foreign Investment Policy

a. Foreign Direct Investment

(1) Automatic Route of Reserve Bank of India for Issue of Shares by an Indian Company

(a) General

(b) Foreign Investment in Trading Companies

(c) Foreign Investment in Small Scale Industrial Units

(d) Foreign Investment in a Small Scale Industrial Export Oriented Unit, a Unit in a Free Trade Zone or Export Processing Zone, or in a Software Technology Park or Electronic Hardware Technology Park

(e) Foreign Investment in Asset Reconstruction Companies

(f) Investment in Infrastructure Companies in the Securities Market

g. Investment in Credit Information Companies

h. Investment in Commodity Exchanges

i. Investment in Public Sector (Nationalized) Banks

(j) Others

(2) Issue of Shares by a Company Requiring Government Approval

(3) Guidelines for Calculation of Foreign Investment

b. Other Modes of Foreign Direct Investment

(1) Issue of Shares by International Offering Through American Depository Receipts and/or Global Depository Receipts

(a) Investment Via Rights Issue

(b) Acquisition of Bonus Shares

(c) Issue and Acquisition of Shares after Merger, Demerger or Amalgamation of Indian Companies

Worksheet 6 Guidelines for Overseas Public Offering of Equity and Related Instruments

Worksheet 7 Rates of Depreciation (Schedule XIV, Companies Act, 1956)

Worksheet 8 Schedule XIII Conditions To Be Fulfilled for Appointment of a Managing or Full Time Director or a Manager Without the Approval of the Central Government

Worksheet 9 Schedule I to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulation, 2000 Relating to Issue of Securities to Person Resident Outside India

Worksheet 10 List of Activities or Items for Which Automatic Route of Reserve Bank for Investment from Persons Resident Outside India Is Not Available/List of Activities or Items for which FDI is Prohibited

Worksheet 11 Sector Specific Guidelines for Foreign Direct Investment

Worksheet 11A Guidelines for Calculation of Total Foreign Investment (Direct and Indirect Foreign Investment in Indian Companies)

Worksheet 12 Reporting Under FDI Scheme - Revised Form FC-GPR

Worksheet 12A Return to be Filed by an Indian Company Who has Arranged Issue of GDR/ADR

Worksheet 15 Prescribed Form for Composite Application to the Government for Foreign Investment and Foreign Technology Agreement Not Qualifying for Automatic Approval and for Grant of Industrial License (Form FC/IL SIA)

Worksheet 16 [Reserved]

Worksheet 16A Form of Annual Performance Report

Worksheet 17 List of Sectors for which Swap or Exchange of Shares Route is Available

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